# The Cato Corporation (CATO)

> Source: Nexqual · https://nexqual.com/CATO · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, The Cato Corporation (CATO), nexqual.com/CATO" · informational, not investment advice.

**Price:** USD 2.32 (+0.87% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 2.3 · day 2.28–2.35 · 52w 2.28–4.46 · market cap $46.2M · NYQ

## Key facts
- Last four reported quarters (through Aug 1, 2026): revenue $644M, net income -$5.6M (-0.9% margin), free cash flow $1.6M (SEC filings).
- 1 of 80 tracked superinvestors hold CATO (13F, Q2 2026): 0 new, 0 added, 0 reduced, 1 unchanged.
- Analysts: None.
- Total return with dividends: 1Y -46.2% vs S&P 500 +14.9%; 5Y -82.7% vs S&P 500 +80.3%.
- Next earnings: 2026-11-19, EPS estimate USD —, revenue estimate $0K.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $769M | $759M | $708M | $650M | $654M | $644M |
| Gross profit | $316M | $250M | $244M | $213M | $222M | — |
| Operating income | $39.0M | -$3.6M | -$17.9M | -$26.4M | -$12.7M | -$13.3M |
| Net income | $36.8M | $29K | -$23.9M | -$18.1M | -$5.9M | -$5.6M |
| EPS (diluted) | $1.65 | $0.00 | -$1.17 | -$0.97 | -$0.31 | — |
| Free cash flow | $55.7M | -$6.1M | -$12.1M | -$27.6M | -$5.2M | $1.6M |
| Gross margin | 41.1% | 32.9% | 34.4% | 32.8% | 34.0% | — |
| Operating margin | 5.1% | -0.5% | -2.5% | -4.1% | -1.9% | -2.1% |
| Net margin | 4.8% | 0.0% | -3.4% | -2.8% | -0.9% | -0.9% |
| Revenue growth | +33.8% | -1.3% | -6.7% | -8.2% | +0.6% | — |
| Cash + short-term investments | $166M | $129M | $103M | $77.7M | $73.6M | — |
Fiscal years end Jan. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Aug 1, 2026)
P/S 0.1x · P/FCF 28.4x · P/B 0.3x · FCF yield 3.52% · Earnings yield -12.11% · Buyback yield (TTM) 0.91%

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold CATO. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Yacktman Asset Management |  | <0.01% | $342K | Unchanged |

## Analysts
Consensus None.

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -46.2% | -82.7% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -46.3% | -29.5% |
| Volatility (annualized) | 53.1% | 50.2% |
| Max drawdown | -47.3% (Oct 2025→Oct 2026) | -84.5% (Nov 2021→Oct 2026) |

## Peers (Apparel Retail)
JILL (J. Jill, Inc.) USD 22.85 -2.02% · SFIX (Stitch Fix, Inc.) USD 2.72 +5.63% · CTRN (Citi Trends, Inc.) USD 46 +0.17% · SHOE (Shoe Station Group, Inc.) USD 14.22 +7.56% · GCO (Genesco Inc.) USD 37.39 +3.20% · CAL (Caleres, Inc.) USD 13.35 +4.95%

## More
Full page: https://nexqual.com/CATO · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-08-01)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Retail | $164.8M | 99.6% | -6.3% | -$1.1M | -0.7% |
| Credit | $651,000 | 0.4% | -0.3% | $494,000 | 75.9% |
| Total revenue | $165.5M | 100% | — | -$618,000 | -0.4% |

## Company outlook (8-K filed 2026-08-25)

- "We will continue to tightly manage our expenses and inventory as we anticipate the back half of 2026 to be challenging." Gross margin decreased from 36.2% to 32.8% of sales in the quarter due to lower merchandise margins and deleveraging of occupancy costs."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter | — | — | — | $0 | — |
| Next quarter | — | — | — | $0 | — |
| Current fiscal year (ends 2022-01-31) | — | — | — | $0 | — |
| Next fiscal year | — | — | — | $0 | — |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2027-01-15 (includes earnings 2026-11-19): ±27.2%; last 8 reports averaged ±5.9%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2027-01-15 | 84 | 54.4% | ±27.2% |